How Ridesharing Affects New & Used Car Markets

CARCHEX

3 years ago

The global ridesharing king Uber is racking up some pretty impressive numbers. A recent blog post revealed Uber had reached the 1 million rides per day mark. So what does this mean for the new and used car market?

In a recent CNBC interview, Benchmark Capital general partner Bill Gurley brought to light some fascinating data. For instance, the number of licensed drivers under the age of 18 has dropped from 43 percent to 28 percent over the past ten years. During this same timeframe, car ownership for 18 to 30 year olds has dropped by 30 percent.

The most reasonable explanation is that people will just keep buying cars. Every major city already has taxis, buses, trains, and subways. But even the most advanced urban centers also have a lot of cars circulating.

People typically don’t own automobiles because it’s the cheapest option. Car owners, in general, like to be exactly that – owners. Sure, many will continue to take advantage of ridesharing advantages such as not having to park, but car ownership is not going away anytime soon.

Used Car Inspection Services And Market

Just like the new car market, the used car market will pay close attention to the ridesharing trend. If new car sales take a hit, then the used car market may follow. For buyers, it’s wise to get as much information about a used car as possible before making a purchase or an offer. With one million Uber riders per day, many vehicles are seeing heavier use than usual.

A used car inspection service can help detect abnormal levels of wear and tear. So this type of service may become more popular as former Uber cars make their way to the used car market.

In the end, cars will always have owners, sellers, buyers, and – in most cases – drivers (read about self-driving cars here). If we pay close attention to these trends, we can avoid risks and capitalize on new opportunities.